“Today’s 1.1% Q1 GDP growth confirms that the economy is getting weaker as inflation is getting stronger. The Fed has already lost its war against inflation. Inflation won, and the U.S. economy lost. The Fed’s next move will be to “rescue” the economy by creating even more inflation,” writes Peter Schiff on X.
In other words, the Fed can’t control inflation, so they will pay off debt with inflation, further eroding the dollar and our place in the world.
Our debt is $35 trillion, the federal deficit so far this year is $1.1 trillion, and the debt is up $2 trillion in the last year. It’s increasing rapidly.
If the Feds have indeed given up on cutting inflation — and it seems they have given the endless unfettered spending and borrowing of the politicians — the only alternative is to inflate our way out of it.
People on fixed incomes will suffer the most, but everyone will pay a price.
The Congressional Budget Office estimates that the US national debt will increase by $20 trillion in the next decade.
On top of that, our government is paying off the debt by borrowing, creating more debt. They could pay off the debt if they cut back, but they won’t. We have millions of needy people pouring into the country, billions for Ukraine, billions for Israel, Taiwan, and on and on.
They won’t stop.
THE BOND MARKET IS SKITTISH
When the government borrows, it issues bonds, and when the bonds mature, the Treasury Department pays them back in full. That is no longer the case. They don’t have any money, so they pay it all back with more borrowed money.
So, how are those bond markets doing? The Wall Street Journal said, “a series of weak auctions for U.S. Treasurys are stoking investors’ concerns that markets will struggle to absorb an incoming rush of government debt.”
In other words, if China suddenly wanted to cash in their US bonds, how would we pay?
The Feds don’t think inflation is under control and interest rates will remain high, possibly for years. The cost of borrowing is dangerously high. The US is paying off old debt with new debt at high-interest rates.
“In the first three months of 2024, the U.S. sold $7.2 trillion of debt, the largest quarterly total on record.,” writes the WSJ.
That’s astonishing.
“It also builds on a record $23 trillion of Treasurys issued last year, which raised $2.4 trillion of cash, after accounting for maturing bonds.’
The debt in ten years will be $48 trillion, a conservative estimate if we continue deficits of over $1 trillion in under six months. That will increase as we fail to pay off the debt and add more debt.
Biden boasts of his fake great economy in the clip below. He has the gall to mock Donald Trump, who is tied up in lawfare. The entire point of the lawfare is to help a very incompetent Joe Biden win. Biden is also a nasty man. Listen to him brag about the economy with lackluster union supporters standing behind him with signs. They look like hostages.
Biden mocks Trump: “Under my predecessor, who’s a little busy right now” pic.twitter.com/HWH49LAEQL
— The Post Millennial (@TPostMillennial) April 18, 2024
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